French Societe Generale is ceasing its banking and insurance activities in Russia, announcing the signing of an agreement to sell its entire stake in Rosbank and its insurance subsidiaries in Russia, said the bank in a press release published on its website Monday.
The Group stated that this agreement was reached after several weeks, and would effectively and orderly withdraw from Russia, while ensuring continuity for its employees and clients.
Societe Generale’s move follows in the footsteps of other international banking services that suspended services in Russia, as a reaction to the country’s offensive in Ukraine, which began on February 24.
The impact of the Rosbank and the Russian insurance activities’ sale on the Group’s CET1 capital ratio is expected to be around 20 basis points based on the asset value on December 31, 2021.
The Group’s CET1 ratio on December 31, 2021 stood at 13.7%,
470 basis points above the minimum regulatory requirement, Societe Generale added.
Additionally, its full payout policy for financial year 2021, namely a dividend of 1.65 euro per share, remains subject to approval by the Combined Ordinary and Extraordinary General Meeting of Shareholders on May 17, 2022, and the share buyback program announced for an amount of approximately 915 million euro, the Group concluded on its press release.
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